This Should Be Your #1 Consideration When Fundraising

When you’re looking for funding for your business, it may be tempting to meet with any investor who’s willing. However, time is money—for investors and entrepreneurs. Before you dedicate hours preparing a deck for a specific investor, travel to a VC, or rearrange your schedules for a meeting, shoot your potential investor a quick email to get a better understanding of their interests.

Investors have all sorts of deal breakers when it comes to businesses and entrepreneurs. Some only invest in early or late-stage rounds. Others may have a preference for businesses in certain industries. Much of this you may be able to garner from their website or from mutual connections, but it’s the personal preferences that may take you by surprise. I’ve had investors say, “I know you work with your husband; I don’t like it.” My husband is COO of Hint, Inc. (my unsweetened flavored water company), and we don’t plan for that to change. No hard feelings. I’ve had others tell me, “I know you’re a mother with young kids, so therefore I probably won’t invest in you.” These are the things you'll only hear from the horse's mouth.

You may feel a little defensive when you hear your interests don't align, but that’s why these exploratory emails are so valuable. With some very minimal digging, you can easily identify unsurmountable hurdles before you waste any of your time. Take that three hours back and spend it preparing to meet with an investor who’s looking for someone just like you.

In the video below, Monika Rose and Marian Kwan, founders of EpicSky, and I discuss some of these hurdles and strategies of fundraising.

The Kara Network is a digital resource for advice and discussion for entrepreneurs, by entrepreneurs.

Kara Goldin is the founder and CEO of San Francisco–based Hint, Inc., which produces the leading flavored water with no sweeteners and nothing artificial.

I am the founder and CEO of San Francisco–based hint, which produces the leading flavored water with no sweeteners and nothing artificial. I founded The Kara Network and recently launched my podcast Unstoppable to tell the stories of entrepreneurs and founders.